Financial Year 2008/2009 - Heidelberg Presents Final First-Quarter Figures

-- Incoming orders 23 percent up at EUR 1.151 billion thanks to
drupa; order backlog climbs from EUR 874 million to EUR 1.298
billion

-- Sales down on previous year's level at EUR 657 million

-- Operating result falls to EUR -35 million
HEIDELBERG, Germany--(Business Wire)--
In the first quarter of financial year 2008/2009, Heidelberger
Druckmaschinen AG (Heidelberg) (FWB: HDD) recorded a significant
improvement in incoming orders over the previous year thanks to
industry trade show drupa. In the period under review, the Heidelberg
Group increased its incoming orders by around 23 percent over the same
quarter the previous year to EUR 1.151 billion (previous year: EUR 934
million). As already announced on July 10, 2008, sales and earnings
were significantly down on the equivalent figures for the previous
year due to difficult market conditions and customers' reluctance to
invest in the run-up to drupa. Sales by the Heidelberg Group in the
first three months (April 1 to June 30) totaled EUR 657 million
(previous year: EUR 742 million). The order backlog at the end of the
first quarter was EUR 1.298 billion (previous quarter to March 31,
2008: EUR 874 million).

"Healthy incoming orders from drupa will mean better operating
results in the second and third quarters than in the first three
months," stated Bernhard Schreier, CEO of Heidelberger Druckmaschinen
AG. "The trade show enabled us to underline our position as the world
leader in the industry, but difficult underlying conditions are still
impacting on the current market situation. The package of measures
already introduced to improve our cost structure will compensate these
effects in the medium term," he added.

The Heidelberg Group recorded an operating result of EUR -35
million in the period under review (previous year: EUR 26 million).
The net result in the first quarter was EUR -39 million (previous
year: EUR 8 million).

Due to the purchase of Hi-Tech Coatings, the cost of drupa, and
falling sales, the free cash flow in the first quarter was clearly
below the previous year's level at EUR -211 million (previous year:
EUR -81 million).

"As already indicated, weak sales and additional costs led to a
negative operating result for the first quarter of the financial
year," explained Heidelberg CFO Dirk Kaliebe. "We are working hard to
ensure successful implementation of the package of cost-cutting
measures introduced so that the resultant savings can be achieved as
planned."

As of June 30, 2008, the Heidelberg Group had a workforce of
19,737 worldwide (previous quarter: 19,596). The reasons for the
increase in the first quarter of financial year 2008/2009 were the
acquisition of the Hi-Tech Coatings companies and the initial
consolidation of the production site in Qingpu, China. Adjusted to
take into account these initial consolidation effects, the workforce
fell by 77 in the first quarter.

Results in the Press and Postpress divisions

A successful drupa resulted in healthy incoming orders in the
Press Division (offset printing) in the first quarter of the year
under review. At EUR 1.030 billion, they were 26 percent up on the
previous year's level (previous year: EUR 817 million). Sales in the
first three months totaled EUR 568 million (previous year: EUR 639
million). The poor performance of sales combined with additional
costs, including those associated with drupa, led to an operating
result of EUR -29 million (previous year: EUR 21 million).

Incoming orders in the Postpress Division (finishing) also
increased in the first quarter thanks to drupa and were 5 percent up
on the same period of the previous year at EUR 114 million (previous
year: EUR 109 million). Quarterly sales amounted to EUR 82 million
(previous year: EUR 95 million). The operating result for the period
under review was EUR -11 million (previous year: EUR -4 million). This
was caused by poor sales and the additional costs associated with
drupa.

In the EMEA, North America, Latin America and Asia/Pacific
regions, incoming orders were up on the previous year's level thanks
to drupa. The improvement was particularly marked in Germany, but
France also benefited greatly from orders placed at the trade show.
drupa did not have the same impact on the Eastern Europe region as it
did, for example, in Central Europe. Sales in all regions were down on
the previous year's level for the first quarter.

The company does not expect to match the previous year's sales and
operating result for the financial year 2008/2009 as a whole. Due to
the uncertain economic situation worldwide and the volatile market
environment, it will not be possible to provide a forecast of the key
figures for the financial year 2008/2009 as a whole until later in the
year. An outlook should be published no later than with the
half-yearly results at the beginning of November 2008.

The complete report for the first quarter of 2008/2009 is
available online at www.heidelberg.com.

For further details, visit the Internet Press Lounge at
www.heidelberg.com.

Other dates:

The scheduled publication date for the half-yearly results for
financial year 2008/2009 is November 6, 2008.

Important note:

This Press Information contains statements about future
development that are based on assumptions and estimates by the
management of Heidelberger Druckmaschinen Aktiengesellschaft. Even if
the management is of the opinion that these assumptions and estimates
are accurate, future actual developments and future actual results may
differ significantly from these assumptions and estimates due to a
variety of factors. These factors can include changes to the overall
economic climate, changes to exchange rates and interest rates and
changes in the graphic arts industry. Heidelberger Druckmaschinen
Aktiengesellschaft provides no guarantee that future developments and
the results actually achieved in the future will agree with the
assumptions and estimates set out in this press release and assumes no
liability for such.

-0-
*T
Heidelberg Group - in numbers

----------------------------------------------------------------------
Q 1 2008/09 Q 1 2007/08 Change
in EUR million (04/01-06/30/08) (04/01-06/30/07) in %
----------------------------------------------------------------------

Net sales 657 742 -11.5%

Press 568 639 -11.1%
Postpress 82 95 -13.7%
Financial Services 7 8 -12.5%

----------------------------------------------------------------------

Incoming orders 1,151 934 +23.2%

Press 1,030 817 +26.1%
Postpress 114 109 +4.6%
Financial Services 7 8 -12.5%

----------------------------------------------------------------------

Order backlog 1,298 1,196 +8.5%

Press 1,197 1,094 +9.4%
Postpress 101 102 -1.0%
Financial Services - - -

----------------------------------------------------------------------

Operating result -35 26

Press -29 21
Postpress -11 -4
Financial Services 5 9

----------------------------------------------------------------------

Financial result -16 -14

Income before taxes -50 12

Net profit -39 8
*T

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*T
Heidelberg Group - regional split

----------------------------------------------------------------------
Q 1 2008/09 Q 1 2007/08 Change Share 08/09
in EUR million (04/01-06/30/08) (04/01-06/30/07) in % in %
----------------------------------------------------------------------

Net sales 657 742 -11.5% 100

EMEA 323 331 -2.4% 49.2
Eastern Europe 71 90 -21.1% 10.8
North America 84 114 -26.3% 12.8
Latin America 31 40 -22.5% 4.7
Asia/Pacific 148 167 -11.4% 22.5

----------------------------------------------------------------------

Incoming orders 1,151 934 +23.2% 100

EMEA 595 446 +33.4% 51.7
Eastern Europe 116 127 -8.7% 10.1
North America 137 122 +12.3% 11.9
Latin America 59 53 +11.3% 5.1
Asia/Pacific 244 186 +31.2% 21.2
*T

Heidelberger Druckmaschinen AG
Corporate Communications
Thomas Fichtl
Phone: +49 (0)6221 92 4747
Fax: +49 (0)6221 92 5069
thomas.fichtl@heidelberg.com

Copyright Business Wire 2008